Feds settle with Dallas company at center of $13 million cryptocurrency scheme
A Dallas-based company and its founders have agreed to pay back more than $10 million to thousands of investors they convinced to buy into cryptocurrencies that later crashed, according to federal regulators.
The Securities and Exchange Commission announced the preliminary settlement Thursday with Dallas-based BitQyck Inc. and founders Bruce Bise and Samuel Mendez. Without admitting guilt, Bise and Mendez consented to pay back $890,000 and $850,000, respectively, while BitQyck will return $8.4 million.
BitQyck raised more than $13 million from 2016 to earlier this year from 13,000 investors in 45 states for the digital tokens, the SEC said in a civil lawsuit that led to the settlement.
But most of the value disappeared as the Bitqy and BitqyM cryptocurrencies tanked. A state complaint said the men told investors the $0.02 cryptocurrency could soar in value to $3 per token, but the cryptocurrency is now virtually worthless.
Read more: https://www.dallasnews.com/business/2019/08/29/feds-settle-with-dallas-company-at-center-of-13-million-cryptocurrency-scheme/